Tag Archive: Temasek

Dec
08
2009

Temasek S$ Bonds Starts Trading Today

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by Martin Lee

December 8, 2009

Temasek Financial has completed its maiden offering of Singdollar denominated 20 and 30-year bond notes worth S$600 million to Singapore based institutional investors.

The S$300-million, 2029 bond has a coupon rate of four per cent, while the S$300 million 2039 bond carries a coupon rate of 4.2 per cent.

The Notes will be listed and quoted in the Bonds Market with effect from 9.00 a.m. today. The Notes are in denomination of S$250,000 each and the will be traded in minimum board lot size of S$250,000 each.

The Notes will be quoted and traded in Singapore Dollars. The Notes are in denomination of S$250,000 each and the Notes will be traded in minimum board lot size of S$250,000 each. Temasek Bonds

  • TemasekFn4%291207 S
  • TemasekFn4.2%391207S

The letter “S” denotes that trading of the Notes is restricted to institutional or other bodies or persons specified in Section 274 of the
Securities and Futures Act 2001 (the “SFA”) or to sophisticated investors specified in Section 275 of the SFA.

The recent Dubai incident should give us a good reminder that buying a bond of a government-linked body is different from buying the sovereign bond itself. An implicit guarantee might or might not materialize as bond holders of Dubai World found out the hard way.

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Oct
20
2009

Temasek Holdings to Raise Money From Bond Issue

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by Martin Lee

October 20, 2009

It was reported that Temasek Holdings will be issuing 10-year USD bonds to generate cash to fund it’s own business as well as it’s subsidiary companies.

The offer is expected to be at least US$500 million with the coupon rate yet unknown. For the previous 10-year bond issuance in 2005, the coupon rate was 4.5%. Temasek is looking to pay a spread of 1% over the equivalent US treasury bills, so the coupon rate could be close to 4%.

The bonds have been rated AAA by S&P and Aaa by Moody.

This brings us back to the commonly asked question: Should we be paid a higher interest for the monies in our CPF Ordinary Account?

Granted the bonds will be issued in USD, but could Temesek have issued bonds in SGD, and pay a coupon higher than 2.5% to the CPF board? Even the 10-year Singapore government bond is giving a yield of close to 2.85% currently.

A higher interest paid on our long term Ordinary Account funds (which are locked in) will go a long way towards helping people with their retirement funding.

100k earning 2.5% over 20 years will become 163k.
100k earning 3% over 20 years will become 180k.
100k earning 3.5% over 20 years will become 199k.
100k earning 4% over 20 years will become 219k.

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